Property Taxes: A Look at Exemptions, Tax Limits and Assessment

National Association of Counties

Property Taxes:

A Look

at Exemptions,

Tax Limits and

Assessment Cycles

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

A Publication of the Research Division of NACo’s County Services Department

Revised by Jacqueline Byers, Research Director

About the National Association of Counties

The National Association of Counties (NACo) is the only national organization that represents county govern-

ments in the United States. Founded in 1935, NACo provides essential services to the nation’s 3,068 counties.

NACo advances issues with a unied voice before the federal government, improves the public’s understand-

ing of county government, assists counties in nding and sharing innovative solutions through education

and research, and provides value-added services to save counties and taxpayers money. For more information

about NACo, visit www.naco.org.

National Association of Counties

Property Taxes:

A Look

at Exemptions,

Tax Limits and

Assessment Cycles

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Property Taxes: A Look at Exemptions,

Tax Limits and Assessment Cycles

Our modern property tax system can be traced back to England as far back as the Middle Ages. Kings of Eng-

land were known for their heavy-handed tax collections. Large English landowners were generally the targets

of tax collection, since they had the greatest ability to pay. In the early days of the United States, property taxes

were frequently the only major revenue source that supported state and local government programs.

A property tax is a levy assessed by a state or local government on real or personal property. In some states lo-

cal authorities such as school districts, water and sewer services are also involved with determining the amount

of property tax levied.

State and local governments rely heavily on the tax revenue derived from property taxes. In fact, property

taxes are often the largest source of income for local governments and some state governments since 37 states

authorize the collection of both state and local property taxes. In some of those 37 states, more revenue is gen-

erated through property taxes that through sales and income taxes combined. The federal government plays

no role in property tax collections. Local and state governments collect property taxes on:

•

Land and structures

•

Improvements to land (property additions)

•

Personal property (cars, trucks, planes, etc.)

The rules and regulations regarding the collection of property taxes vary from state to state. Common in most

governments, however, is the granting of exemptions from this tax for government-owned property, property

owned by nonprot organizations, schools, religious institutions and special categories of homeowners. All

states give taxing authority to counties. Most states and counties that collect property taxes rely heavily on

them as a source of revenue. With local governments and school districts depending more on property taxes

than any other revenue source. In fact, counties in New England states are above the national average in prop-

erty tax reliance.

Determining the Property Tax

Each county in the country that uses property taxes as a major source of revenue starts the budget process in

much the same way. Local governments start the process by going through their budgets and determining

what services and programs they will be providing during the coming scal year and the level of these services.

The next step determining the cost of providing these services; taking into account ination, negotiated salary

increases and other factors. Finally, the governments look at the sources of funding to pay for these services

and programs and in the vast majority of counties, after looking at all other funding sources, the governments

look to property taxes for the remaining revenue.

The property tax is based on the tax rate that the county sets on the taxable value of property. County tax rates

vary across the nation from some of the highest in counties in New York and New Jersey, to the lowest which

include nearly all of the Parishes in Louisiana.

Local assessors set the value of property using standards set by state law. Of the common methods (market

value method, cost method or income method) market value is the method most frequently used. Property is

assessed on a cycle based on the states’ standards. Thirty-four states and the District of Columbia use statistical

methods to adjust reappraisals such as sales-ratio analysis that compares sale price to assessed value. Once the

market value of the property is determined, it is then multiplied by the established assessment ratio giving the

taxable value. This number is then used in the formula that determines the taxes due.

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Each year counties look to the assessed or appraised values of the property in the county to help make tax rate

decisions. Local assessing o cers value property in each county based on a cycle that is often determined by

state law. These appraisals nearly always involve mandated property inspections. Cycles for these appraisals

can be as frequent as an annual reassessment by some local counties in many states to between 5 and 10 year

cycles in Alaska and North Dakota.

Table 1

State Assessment Cycles

Most Common

Assessment Cycle (Years)

Alabama Locally determined 4

Alaska Locally determined 2 -3

Arizona Locally determined Annually

Arkansas Locally determined 5

California Annually

Colorado 2

Connecticut Locally determined 4

Delaware Locally determined Varies

Florida Locally determined Annually

Georgia Locally determined 3

Hawaii Locally determined Annually

Idaho Locally determined 5

Illinois Locally determined 4

Indiana Locally determined 4

Iowa Locally determined 2

Kansas Annually

Kentucky

Louisiana Locally determined

Maine

Maryland

Massachusetts Locally determined 3

Michigan

Minnesota

Mississippi Locally determined 4

Missouri Locally determined 2

Montana 4 - 6

Nebraska 5- 10

Nevada 5

New Hampshire

New Jersey Locally determined

New Mexico Locally determined 2

New York Locally determined Varies

North Carolina Locally determined between 4 - 8

North Dakota Locally determined between 5 - 10

Ohio 6

Oklahoma 4

Oregon Locally determined 6

Pennsylvania Locally determined

Rhode Island Locally determined 10

South Carolina Locally determined 5

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

South Dakota

Tennessee 6

Texas Locally determined 3

Utah Locally determined 5

Vermont Locally determined

Virginia Locally determined 4

Washington Annually

West Virginia Annually

Wisconsin Locally determined 5

Wyoming Annually

Once the taxable value of property has been calculated, the county works to determine the tax rate it will

levy on the taxable value of its properties. The county manager or chief nancial o cer usually calculates the

amount of revenue needed from its taxable property to meet the budgetary needs of the county for the scal

year and determines the tax rate. This tax rate is included in the budget recommendation that goes to the

governing body, usually the County Board for approval. The County Board, as it goes through its budgetary

process, will decide if this is the rate they want and need to levy and can make additional changes to its budget

in order to minimize increases in the tax rate. One of the considerations when establishing a tax rate is the

number of properties that will receive some type of property tax exemption (s) based on state or local law.

These authorized exemptions vary from place to place but can range from annual homestead exemptions to

exemptions for seniors or for the disabled, to widows of reghters or military veterans. The amounts of these

exemptions vary.

Table 1: Property tax exemptions

State Exemptions

Alabama

Personal Property; Homestead Exemptions, Homesteads; Generally, Veterans; Home, Dis-

abled Senior Citizens and many other Corporations are exempt from property taxes

Alaska

Yes, there are some mandatory exemptions and some optional exemptions. These exemp-

tions, however, apply only to certain properties. Under AS 29.45.030(e), there is a manda-

tory exemption up to the rst $150,000 of assessed value for the primary residence of a

senior citizen, age 65 years and older, or a disabled veteran with a service connected dis-

ability of 50% or more. This exemption must be applied for by January 15 unless another

date not later than March 31 is provided by ordinance on a form approved by the state

assessor. (A municipality may waive timely ling for good cause.) All municipalities are

required to grant this exemption

Arizona

Honorably discharged airman, soldier, sailor, United States marine, member of revenue

marine service, the coast guard, nurse corps or of any predecessor or of the component of

auxiliary of any thereof, resident of this state; property of each widower; person who, after

age seventeen, has been medically certied as totally and permanently disabled under

guidelines

Arkansas

Arkansas’ disabled veterans who have been awarded special monthly compensation by

the Department of Veterans Aairs for the loss of, or the loss of use of, one (1) or more

limbs, for total blindness in one (1) or both eyes, or for service-connected one hundred

percent (100%) total and permanent disability shall be exempt from payment of all state

taxes on the homestead and personal property owned by the disabled veteran. Surviving

spouses, so long as they remain unmarried, and dependent children, during their minority,

continue this entitlement. Entitlement is also available if the veteran was killed or died

within the scope of his military duties, is missing in action, or died from service connected

causes as certied by the Department of Veterans Aairs. If subsequent marriage is termi-

nated, surviving spouse may be reinstated. In all cases, annual re-certication of continued

entitlement by the VA is required

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

California

Current law provides a basic exemption of $100,000 on the principal place of residence

for veterans with specied disabilities or for unmarried surviving spouses of deceased dis-

abled veterans. A one-time ling is required. This exemption may be raised to $150,000 if

the applicant meets the income limit of $40,000. Annual ling is required for the $150,000

exemption. The income limit and both the exemption amounts are adjusted annually for

ination

Colorado

SCR06-001 has passed and will be on the November ballot. It provides a Property Tax

Exemption for 100% SC disabled veterans. Governor Ritter signed Senate Bill 10-190 which

eliminates the Senior Property Tax Exemption for the years 2010 and 2011 aecting taxes

payable in 2011 and 2012.

Connecticut

The law establishes two state-funded property tax relief programs for qualied elderly and

disabled homeowners. The rst is the “circuit breaker” program, which provides a property

tax credit based on the participant’s income and marital status. (CGS § §12-170aa-cc).

The second is the Tax Freeze program, which freezes property taxes at 1967 through

1978 levels. The tax freeze program has been closed to new applicants since 1979. (CGS §

12-129b). The state reimburses towns for the taxes they lose under these two programs.

Veterans, who have ninety days of wartime service, including Merchant Marines, who

served during WWII, are eligible for a $1,500 exemption for property tax purposes (e.g.,

real property or automobiles). You have the option to choose to apply this exemption to

your real estate or automobile tax. Certain veterans, who do not own real property or a

motor vehicle, may be eligible for a tax refund if they are leasing a motor vehicle. Veterans

below a certain income level and/or service connected disabled veterans are eligible for

additional property tax exemptions (up to $10,000 for paraplegics). Surviving spouses of

veterans may also be eligible for this benet.

Delaware

Homeowners age 65 or over are eligible for a tax credit against regular school property

taxes of 50 percent (up to $500). This credit may only be used against property taxes on a

primary residence

Florida

Homestead up to $50,000; widows and widowers $500; disability $500; blind persons $500;

total and permanent disability; local option homestead for persons 65 and older; disability

for an ex-service member up to $5,000; service-connected, total and permanent disability

or conned to a wheelchair; discount for veterans 65 and older with a combat related dis-

ability; deployed military exemption;

Georgia

Standard Homestead Exemption (Generally, a homeowner is entitled to a homestead ex-

emption on their home and land underneath provided the home was owned by the ho-

meowner and was their legal residence as of January 1 of the taxable year; Individuals 65

Years of Age and Older May Claim an exemption from state tax on their home and 10 acres

of land surrounding the home; Individuals 65 Years of Age and Older May Claim a $4,000

Exemption; Homestead Exemption for Disabled Veteran or Surviving Spouse; Homestead

Exemption for Surviving Spouse of U.S. Service Member; Homestead Exemption for Surviv-

ing Spouse of Peace O cer or Fireghter

Hawaii

Applies to real property that is owned and occupied as a home by a totally disabled vet-

eran or widow(er). Also applies to passenger cars when they are owned by totally disabled

veterans and subsidized by the Department of Veterans Aairs

Hawaii County: disability exemption, home exemptions, veterans exemption

Maui County: disabled veteran’s, active duty deployed military, non-prot, taro, leprosy,

impaired sight or hearing, totally disabled, credit union and child care facilities

Idaho

Idaho has a homeowner’s exemption for owner-occupied homes and manufactured

homes that are primary dwellings. The exemption includes the value of your home and up

to one acre of land

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Illinois

The General Assembly by law may exempt from taxation only the property of the State,

units of local government and school districts and property used exclusively for agricultur-

al and horticultural societies, and for school, religious, cemetery and charitable purposes.

The General Assembly by law may grant homestead exemptions or rent credits.

Indiana

Homestead standard deduction, over 65 deduction, veteran deduction, disabled veteran

deduction

Iowa

Disabled and Senior Citizens Property Tax Credit/Rent Reimbursement, Homestead Credit,

Military Exemption

Mobile Home Reduced Tax Rate

Kansas

Any property owner requesting an exemption from the payment of ad valorem property

taxes assessed, or to be assessed, against their property shall be required to le an initial

request for exemption, on forms approved by the state court of tax appeals and provided

by the county appraiser. The initial exemption request shall identify the property for which

the exemption is requested and state, in detail, the legal and factual basis for the exemp-

tion claimed. The request for exemption shall be led with the county appraiser of the

county where such property is principally located. After a review of the exemption request,

and after a preliminary examination of the facts as alleged, the county appraiser shall rec-

ommend that the exemption request either be granted or denied, and, if necessary, that a

hearing be held. If a denial is recommended, a statement of the controlling facts and law

relied upon shall be included on the form.

Kentucky

There shall be exempt from taxation...personal property both tangible and intangible

owned by...who is sixty-ve years of age or older, or is classied as totally disabled under a

program authorized or administered by an agency of the United States government or by

any retirement system either within or without the Commonwealth of Kentucky

Louisiana Homestead exemption

Maine

Homestead Exemption -This program provides a measure of property tax relief for certain

individuals that have owned homestead property in Maine for at least twelve months and

make the property they occupy on April rst their permanent residence. Property owners

would receive an exemption of $10,000; Veteran Exemption - A veteran who served dur-

ing a recognized war period and is 62 years or older; or, is receiving 100% disability as a

Veteran; or, became 100% disabled while serving, is eligible for $6,000; Paraplegic Veteran

- A veteran who received a federal grant for a specially adapted housing unit may receive

$50,000; Blind Exemption - An individual who is determined to be legally blind receives

$4,000

Maryland

A property tax exemption is available to veterans who are permanently and totally dis-

abled from service-connected causes, for their primary residence located in the State of

Maryland. The exemption passes to the veteran’s spouse upon his or her death. The surviv-

ing spouse of active duty military personnel who died in the line of duty as well as the

surviving spouse of a totally disabled veteran, or a spouse who receives the dependency

and indemnity compensation (eective June 30, 2006) may also receive an exemption.

Those persons with a central visual acuity of 20/200 or less in the better eye may receive,

with a doctor’s certication, an exemption of $15,000 of assessment reduction on the

dwelling house and surrounding yard. Legally blind persons may apply at any time and

need not meet the general September 1 ling deadline.

Massachusetts

An elderly person with nancial need, age 70 or older (65 in some communities); a person

who is legally blind (with proof of blindness); a widow/widower, or a minor child with one

parent deceased; a veteran with a wartime disability (or surviving spouse); a homeowner

of any age who is facing a severe nancial hardship

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Michigan

Michigan’s property tax credit is a way the State of Michigan helps you pay some of your

property taxes if you are a qualied Michigan homeowner or renter. You may claim a

property tax credit if all of the following apply: Your homestead is in Michigan, You were

a resident of Michigan for at least six months during the year, You own/rent and occupy a

Michigan homestead on which property taxes were levied, Your household income is less

than $82,650; Mobile Home Park Resident - You may claim $3 per month (12 months x $3

= $36) for a total of $36 and 20% of the yearly rent amount less the $36 (total yearly rent

- $36 = lot rental without property tax; x 0.20) for the total amount. If you paid additional

taxes on attached buildings (garage, tool shed, etc.), then you may also claim that amount;

An alternate credit is available only to renters age 65 or older whose rent is more than

40% of their household income; Nursing home: If one spouse lives in a nursing home or

foster care home and the other spouse maintains a home, you may le a joint credit claim.

Combine the tax for the homestead and the share of the facility’s property tax to compute

your claim. If you are single and maintain a homestead (that is not rented to someone else)

while living in a nursing home or adult care facility, you may claim either your homestead

or your share of the facility’s property tax, but not both. Use the one that gives you the

larger credit; allows homeowners an exemption from their local School Operating Millage

Minnesota Homestead; disabled veteran

Mississippi

Homestead Exemption is a privilege oered to eligible taxpayers by the State of Missis-

sippi; Service-connected, totally disabled (100%) American veterans who were honorably

discharged from military service are exempt from all ad valorem taxes on homesteads of

$7,500.00 or less in assessed value

Missouri

If you or your spouse is a 100% service connected disabled veteran, you may qualify for a

Property Tax Credit with the State of Missouri. Veterans and non-veterans may also qualify

for this credit if they are over age 65 even if they are not 100% disabled.

Montana

Property Tax Assistance Program: A qualied applicant is someone who is an owner of

the property and who occupied the property as their primary residence for at least seven

months during the preceding calendar year; Extended Property Tax Assistance Program:

Those properties that meet the preliminary criteria to receive applications are determined

by the Department of Revenue from valuation information stored on its ORION computer

system; Disabled American Veterans (DAV) Property Tax Benets: A benet of a reduced

property tax rate is available by application, for Disabled Veterans and the Surviving

Spouse of a veteran that was killed while on active duty or died as a result of a service-

connected disability; Elderly Home Owner/Renter Credit: An eligible individual is someone

who during the tax year reached age 62 or older as of December 31, 2011, resided in Mon-

tana for 9 months or more of the period, occupied one or more dwellings in Montana as an

owner, renter, or lessee for 6 months or more and had less than $45,000 of gross household

income

Nebraska

An honorably discharged veteran or a veteran with a general discharge under honorable

conditions, of the United States Armed Forces, whose disability or blindness is recognized

by the Department of Veterans’ Aairs of the United States of America as service con-

nected and Who has lost the use of or has undergone amputation of two (2) or more

extremities, or Who has undergone amputation of one (1) or more extremities and has lost

the use of one (1) or more extremities, or Whose sight is defective so as to seriously limit

his or her ability to engage in ordinary vocations and activities of life, shall be eligible for

exemption from taxation for the following property: A mobile home owned and occupied

by the blind or disabled veteran; and One motor vehicle owned and used for his or her

personal transportation

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Nevada

Senior Citizen Tax Rebate/Rental Assistance program has been eliminated by the Nevada

State Legislature. The Surviving Spouse Exemption applies to Nevada residents and is in

the amount of $1,170 assessed valuation deduction. Conversion into actual cash dollar

savings varies depending on the tax rates—approximately $40 per year on real estate or

personal property taxes. The Veteran’s Exemption provides a $2,340 exemption for as-

sessed value deduction. The Disabled Veteran’s Exemption is provided for veterans who

have a permanent service connected disability of at least 60%. The amount of exemption

is dependent upon the degree of disability incurred. The Blind Exemption is in the amount

of $3,510 assessed value deduction. Conversion into actual cash dollar savings varies de-

pending on the tax rates—approximately $120 per year on real estate or personal property

taxes.

New Hampshire

Exemption for the Disabled: This Exemption is $32,000 o the assessed value o a person’s

residential real estate; Exemption for the Blind: This Exemption is $30,000 o the assessed

value of a person’s residential real estate; Exemption for the Elderly: For a person 65–74

years of age, the exemption is $125,000 o of the assessed value, For a person 75–79 years

of age, the exemption is $175,000 o of the assessed value, For a person 80 years of age

and older, the exemption is $225,000 o of the assessed value; Veterans or Veterans Widow

Tax Credit: This is a $200 tax credit from the property tax on a qualifying veteran’s residen-

tial property; Tax Credit for Service-Connected Total Disability: This is a $2,000 tax credit

from the property tax on a qualifying veteran’s residential property

New Jersey

Homestead Benet Program: Homeowners Age 65 or Older and/or Disabled on December

31, 2010, Homeowners Under Age 65 and NOT Disabled on December 31, 2010; New Jer-

sey’s Constitution and Tax Laws provide that certain totally and permanently disabled war

veterans or the surviving spouses of such disabled war veterans or the surviving spouses

of servicepersons who died on wartime active duty be exempt from real estate taxes on

their principal residence and the lot on which that residence is situated. To qualify for a real

estate tax exemption as a veteran, you must be honorably discharged from active wartime

service in the US Armed Forces and be VA certied as having service-connected total or

100% permanent disability

New Mexico

Veterans’ Tax Exemption: Any veteran who was honorably discharged from the U.S. Armed

Forces and served 90 or more days of active duty and has established legal residency in

New Mexico, qualies for the New Mexico Veterans’ Tax Exemption; Disabled Veteran Tax

Exemption: Any veteran who has been approved for 100 percent service-connected dis-

ability compensation benets by the Department of Veterans Aairs (VA) is eligible for a

complete property tax waiver on their primary residence; Head of Family: The state statue

on this reads: As used in this section, Head of the Family

means an individual New Mexico resident who is either Married, Widow or Widower, Head

of Household furnishing more than one half the cost of

support of any related person; or A single person

New York

Disabled Homeowners’ Exemption (DHE): DHE is granted to owners of 1-, 2-, and 3-family

houses, condominiums, or cooperative apartments who meet disability status, income and

residency requirements; Senior Citizen Homeowners’ Exemption (SCHE): SCHE is granted

to owners of 1-, 2-, and 3-family houses, condominiums, or cooperative apartments who

meet age, income and residency requirements; Basic STAR: There is no age limit. Beginning

July 1, 2011, total combined household income must be $500,000 or less; The Veteran’s

Exemption can be applied to Class 1, Class 2 and Class 4 properties. A qualied veteran is

one who served in the armed forces during one of the specied periods of conict; The

property must be the primary residence of the applicant(s). This means you must live in

the house, condominium, or cooperative apartment more than six months a year. Other

owners who are eligible: Wife or husband of a qualied veteran, Surviving spouse of a

qualied veteran (who has not remarried), Gold Star parent (the parent of a child who died

in the line of duty while serving in the US armed forces during one of the periods above),

Registered domestic partner of a qualied veteran

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

North Carolina

North Carolina excludes from property taxes a portion of the appraised value of a per-

manent residence owned and occupied by North Carolina residents aged 65 or older or

totally and permanently disabled whose income does not exceed $27,100 annually; North

Carolina excludes from property taxes $45,000 of the appraised value of a permanent

residence owned and occupied by an honorably discharged disabled veteran or the un-

married surviving spouse of an honorably discharged disabled veteran. A disabled Veteran

is a Veteran who either (1) has 100% permanent total disability that is service-connected or

(2) receives benets for specially adapted housing under 38 U.S.C. 2101; Circuit Breaker Tax

Deferment for Senior Citizens: For an owner whose income amount for the previous year

does not exceed the income eligibility limit for the current year, which for the 2009 tax year

is $27,100 the owner’s taxes will be limited to four percent (4%) of the owner’s income

North Dakota

Residential and agricultural property income tax credit: This credit is based on the property

taxes levied on North Dakota residential or agricultural property. To qualify for this credit,

all of the following conditions must apply: Your primary residence, whether owned or

leased, must be located in North Dakota; The credit is allowed only on property you own;

The property is classied as residential or agricultural for property tax purposes; The prop-

erty is located in North Dakota

Ohio

In 2007, state leaders expanded the homestead exemption to make property tax relief

available to more than a halfmillion additional senior citizens and permanently and totally

disabled Ohioans. The redesigned exemption oers all eligible homeowners, regardless of

income, the opportunity to shield up to $25,000 of the market value of their homestead

from property taxation. Seniors and disabled Ohioans must apply with their local county

auditor in order to take advantage of the homestead exemption

Oklahoma

Homestead Exemption: If you maintain a homestead and meet the ownership and resi-

dency requirements, you should qualify for homestead exemption. Homestead exemption

is a $1,000 deduction from the gross assessed value of your home; Additional Homestead

Exemption

If your gross household income from all sources (except gifts) is $20,000

or less a year, and you meet all the homestead exemption requirements, you

may qualify for an additional $1,000 exemption; Property Tax Refund/Credit

If your gross household income from all sources (except gifts) is

$12,000 or less, AND you are at least 65 years of age OR totally disabled,

you may be eligible for a property tax refund.

Oregon

Disabled Veteran or Surviving Spouse Property Tax Exemption: If you are a disabled veteran

or the surviving spouse or registered domestic partner (partner)* of a veteran, you may be

entitled to exempt $17,911 or $21,493 of your homestead property’s assessed value from

property taxes; Oregon Active Duty Military Service Member’s Exemption Claim

Pennsylvania

The income eligibility level for the Property Tax/Rent Rebate Program has been raised from

$15,000 a year to $35,000 a year, excluding half of Social Security income, and the maxi-

mum rebate was increased from $500 to $650 for homeowners. Claimants or spouses 65

years of age or older; widows or widowers 50 years of age or older; and the permanently

disabled 18 years of age or older may qualify for the Property Tax/Rent Rebate Program.

In addition, property tax rebates are increased by an additional 50 percent for senior

households in the rest of state, so long as those households have incomes under $30,000

and pay more than 15 percent of income in property taxes; Any honorably discharged

veteran who is a resident of the Commonwealth shall be exempt from the payment of

all real estate taxes levied upon any building, including the land upon which it stands,

occupied by him as his principal dwelling, provided that as a result of wartime military

service the veteran has a 100% service-connected disability rating by the U.S. Department

of Veterans Aairs; that such dwelling is owned by him solely or jointly with his spouse (an

estate by the entirety); and that the nancial need for the exemption from the payment of

real estate taxes has been determined by the State Veterans’ Commission. Upon the death

of the qualied veteran, the exemption passes on to the unmarried surviving spouse if the

nancial need can be shown.

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Rhode Island

Property Tax Relief Claim: legal resident of Rhode Island for all of 2011, live in a household

or rent a dwelling that was subject to property tax, current for property taxes or rent due

on the homestead for all prior years, current on 2011 property taxes or rent and will pay

any unpaid installments, household income $30,000 or less

South Carolina

The dwelling house and up to one acre of surrounding land is exempt for: a veteran who

is permanently and totally disabled from a service-connected disability and the surviving

spouse, the surviving spouse of military personnel killed in the line of duty, a paraplegic or

hemiplegic person and the surviving spouse; a homestead exemption of $50,000 is avail-

able to residents who are 65 years of age, who are totally disabled or who are totally blind;

Up to $100,000 exemption for legal residences from ordinary school millage

South Dakota

Property Tax Exemption for Disabled Veterans: Veterans that have been rated as perma-

nently and totally disabled as the result of a service connected disability may be eligible

for up to $100,000 of their property value to be exempt from property taxes; Property Tax

Refund for Aged and Disabled Persons: 1.The head of the household must be sixty-ve

years of age, or older, or shall be disabled prior to January rst of the year in which taxes

are levied. 2. The applicant must have owned the property for at least three years or, have

been a resident of this state at least ve years if not qualied under the three year owner-

ship criteria.

Tennessee

Elderly Homeowner or DISABLED HOMEOWNER: Must be 65 or older on or before De-

cember 31, 2011, Must provide evidence of age, Must own and use the property on which

you are applying as your primary residence, Combined 2010 annual income for you, *your

spouse and

all other owners of the property cannot exceed $26,830; DISABLED

VETERAN: A service-connected disability that resulted in:

Paraplegia OR Permanent paralysis of both legs and lower part of the body resulting from

traumatic injury or disease to the spinal cord or brain; OR Loss, or loss of use of, two (2)

or more limbs; OR legal blindness; A total and permanent disability rating from a service

connected disability; A 100% total and permanent disability rating from being a prisoner

of war; Must own and use property on which you apply as your primary residence.

WIDOW(ER) OF A DISABLED VETERAN: Property tax relief shall also be extended to the

surviving

spouse of a disabled veteran who at the time of the

disabled veteran’s death was eligible for disabled veterans’ property tax relief.

Texas

Homestead: You may apply for homestead exemptions on your principal residence. Home-

stead exemptions remove part of your home’s value from taxation, so they lower your

taxes; Age 65 or older and disabled exemptions: Individuals 65 and older and/or disabled

residence homestead owners may qualify for a $10,000 homestead exemption for school

taxes, in addition to the $15,000 exemption for all homeowners. If the owner qualies for

both the $10,000 exemption for 65 and older homeowners and the $10,000 exemption

for disabled homeowners, the owner must choose one or the other for school taxes. The

owner cannot receive both exemptions; Optional 65 or older or disabled exemptions: Any

taxing unit may oer an additional exemption amount of at least $3,000 for taxpayers age

65 or older and/or disabled; Veterans: Disabled veterans who meet certain requirements,

their surviving spouses and the spouses and minor children of a person who dies on active

duty in the U.S. Armed Forces are eligible for property tax exemptions on the appraised

value of their property. The exemption is mandatory and applies to taxes levied by all tax-

ing authorities in the State. A veteran, whose service-connected disabilities are rated less

than 10% by the Department of Veterans Aairs, or a branch of the Armed Forces, is not

entitled to a property tax exemption.

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Utah

Low Income Abatement: age 65 or older on or before December 31, 2011, or under age

65 and disabled, or under age 65 and it would be an extreme hardship to pay the tax, total

household income less than $29,210, reside in the home for which you are claiming the

abatement for ten months during 2011; Homeowner’s Tax Credit: age 66 or older on or

before December 31, 2011, or Are you a widow or widower, total household income less

than $29,210, furnish your own nancial support for 2011, live in Utah for the entire year

of 2011; Veteran Property Tax Abatement: A Utah permanent place-of-residence property

tax exemption equivalent to the military service-connected disability rating percentage is

provided for disabled veterans or for their unremarried widows or minor orphans

Vermont

Renters Rebate Claim: If Household Income is $47,000 or less, you may be eligible for a

renter rebate; Homeowner’s Property Tax Adjustment: Homeowners with Household

Income up to $97,000 may be eligible for a property tax adjustment;

Virginia

Section 6-A. Property tax exemption for certain veterans.

Notwithstanding the provisions of Section 6, the General Assembly by general law, and

within the restrictions and conditions prescribed therein, shall exempt from taxation the

real property, including the joint real property of husband and wife, of any veteran who

has been determined by the United States Department of Veterans Aairs or its successor

agency pursuant to federal law to have a one hundred percent service-connected, perma-

nent, and total disability, and who occupies the real property as his or her principal place

of residence. The General Assembly shall also provide this exemption from taxation for real

property owned by the surviving spouse of a veteran who was eligible for the exemption

provided in this section, so long as the surviving spouse does not remarry and continues

to occupy the real property as his or her principal place of residence.

Washington

Property Tax Exemption for Senior Citizens and Disabled Persons: If you are a senior citizen

or disabled with your primary residence in Washington State, there are two programs that

may help you pay your property taxes and/or special assessments. Your household income

and your age or disability determines your eligibility for both programs.

West Virginia

Homestead Exemption: This program provides for a $20,000 exemption against the total

assessed value of a single family dwelling, including mobile or manufactured homes,

owned and occupied as a residence by any person who is at least sixty-ve years old

or totally and permanently disabled and who has legally resided in and paid taxes on a

homestead in this State for two consecutive taxable years before ling for this exemp-

tion; Homestead Exemption for Certain Eligible Veterans Specic information is available

through the local County Assessor’s O ce.

Wisconsin

Homestead Exemption: To qualify for homestead credit for 2011 You must have been a

legal resident of Wisconsin for all of 2011, from January 1 through December 31, You must

have been 18 years of age or older on December 31, 2011. You cannot be claimed as a

dependent on someone else’s 2011 federal income tax return(Note: This limitation does

not apply if you were 62 years of age or over on December 31, 2011.), Your household

income must have been less than $24,680 for 2011, You must have been the owner or

renter of your Wisconsin homestead during 2011, You must not have lived for the entire

year 2011 in housing that is exempt from property taxes, You must not, at the time of ling

a claim, be living in a nursing home and receiving Title XIX medical assistance, You must

not be claiming Wisconsin farmland preservation credit for 2011. You must not be claiming

the veterans and surviving spouse’s property tax credit on the 2011 real estate taxes. Only

one claim may be led per household (husband and wife residing together), No claim may

be led on behalf of a person after his or her death. You must not have received Wisconsin

Works (W2) payments of any amount or county relief payments of $400 or more for each

month of 2011; A Wisconsin property used as the owner’s primary residence may qualify

for a Lottery and Gaming credit; If there is a real property improvement on the land, the

property qualies for the First Dollar Credit; All taxable real property in Wisconsin qualies

for the School Levy Tax Credit

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Wyoming

Veteran’s exemption is available to Wyoming homeowners that have resided in the State

for a minimum of three years, who are honorably discharged, served in certain military

conicts or possess an expeditionary medal. The exemption is applied against the veteran’s

assessed value, up to the maximum of $3,000 per year, on property owned by the veteran

and/or spouse. This exemption is also available to a qualied veteran’s surviving spouse;

Wyoming’s homeowner’s tax credit is available only when funded by the legislature. If the

program is funded, it provides property tax relief for homeowners on their principal resi-

dence; The property tax deferral program is available to elderly, disabled, and low-income

homeowners, or if home was purchased prior to December 31, 1987, and if the program is

adopted by the county commissioners. This program may allow up to one half of the an-

nual property taxes to remain unpaid. All unpaid taxes become a lien against the property.

The taxes must be paid if a davits aren’t led, if the property is sold or transferred, if the

owner dies, or if ordered by the county commissioners. Commissioners may order pay-

ment of any deferred taxes, which exceed half the property’s market value; The property

tax refund program is available to persons who meet certain gross income criteria. An

application must be led on or before the rst Monday in June with the county treasurer or

Department of Revenue

Property taxes are responsible for more than 50% of all local tax revenue. Thirteen states have local govern-

ments that rely on property taxes for more than 90% of their local tax revenue. In fact, there are only 9 states

that rely 60% or less on revenue from property taxes. Even though county governments rely heavily on

property taxes as a source of revenue there are numerous constraints that can be placed on this tax process.

These limits can be placed in areas such as property assessment increases, property tax rates and local revenue

growth. There are also several states that allow citizen driven initiatives that appear on state ballots that allow

citizens to pass laws and amend state constitutions in ways that impact property tax administration and collec-

tion. Some notable examples of such citizen driven initiatives are Proposition 13 in California, Proposition 2 ½

in Massachusetts, and “Cut and Cap” in Oregon.

Other rules and restrictions are placed on property taxes by the states. The property taxes due on any piece of

property can vary signicantly based on the state’s assessment cycle alone. Property tax rates that change on a

yearly basis can also have a great impact on the nal tax due for real estate. Some states have established strict

guidelines that set limits or limit the actions that can be taken by taxing authorities. These can include caps on

the millage rate, freezes on assessments, and limitations on the amount of revenue that can be generated from

taxes.

Table 2: Restrictions on Local Property Taxes

State No Limits

Property

Tax Rate

Limits

Assessment

Limits

Revenue

Rollbacks

Expenditure

Limits

Property

Tax Freeze

Alabama Yes Yes

Alaska Yes

Arizona Yes Yes Yes Yes

Arkansas Yes Yes Yes Yes

California Yes Yes Yes

Colorado Yes

Connecticut Yes

Delaware Yes

Florida Yes Yes Yes

Georgia l

Hawaii Yes

Idaho Yes

Illinois Yes Yes Yes

Indiana Yes

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Iowa Yes Yes Yes

Kansas Yes Yes Yes

Kentucky Yes Yes Yes

Louisiana Yes Yes

Maine Yes

Maryland Yes

Massachusetts Yes

Michigan Yes Yes Yes

Minnesota Yes

Mississippi Yes

Missouri Yes Yes

Montana Yes Yes

Nebraska Yes Yes

Nevada Yes Yes

New Hamp-

shire

Yes

New Jersey Yes m Yes

New Mexico Yes Yes

New York Yes Yes (a)

North Carolina Yes

North Dakota Yes

Ohio Yes Yes (l)

Oklahoma Yes Yes Yes

Oregon Yes Yes

Pennsylvania Yes l

Rhode Island Yes

South Carolina Yes Yes Yes

South Dakota Yes Yes Yes

Tennessee l

Texas Yes Yes Yes s

Utah Yes

Vermont Yes

Virginia Yes

Washington Yes Yes Yes Yes

West Virginia Yes

Wisconsin a (2) l

Wyoming Yes

Key

a = selected counties

l = local opinion

m = municipalities

s = school districts

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

Resources

Exemptions

Alabama: http://www.ador.state.al.us/advalorem/exemptions/exemptions.htm

Alaska: http://www.dced.state.ak.us/dca/LOGON/tax/tax-exemptions.htm

Arizona: Article 9 Section 2.0, 2.1, 2.2, 2.3 http://www.azleg.gov/FormatDocument.asp?inDoc=/const/9/2_1.

htm

Arkansas: http://www.veterans.arkansas.gov/benets.html

California: California Property Tax: An Overview 2009 p. 7-8, Betty T. Yee, Sen. George Runner, Michelle Steel,

Jerome E. Horton, John Chiang and Kristine Cazadd http://boe.ca.gov/proptaxes/pdf/pub29.pdf

Colorado: http://www.military.com/benets/content/veteran-state-benets/colorado-state-veterans-benets.

html http://jeco.us/assessor/assessor_T80_R62.htm

Connecticut: http://www.cga.ct.gov/2008/rpt/2008-R-0005.htm http://www.military.com/benets/content/

veteran-state-benets/connecticut-state-veterans-benets.html

Delaware: http://nance.delaware.gov/publications/proptax/propmain.shtml

Florida: http://dor.myorida.com/dor/property/taxpayers/exemptions.html

Georgia: https://etax.dor.ga.gov/ptd/adm/taxguide/exempt/homestead.aspx

Hawaii: http://www.hawaiipropertytax.com/Forms/HtmlFrame.aspx?mode=Content/Forms_Exemptions.

htm&LMparent=237, http://www.mauicounty.gov/FAQ.aspx?TID=94&PREVIEW=YES

Idaho: http://tax.idaho.gov/i-1051.cfm

Illinois: Article IX Section 6 http://www.ilga.gov/commission/lrb/con9.htm

Indiana: http://www.in.gov/dlgf/2344.htm

Iowa: http://www.iowa.gov/tax/taxlaw/PropertyTaxCredits.html

Kansas: http://kansasstatutes.lesterama.org/Chapter_79/Article_2/79-213.html

Kentucky: http://www.lrc.ky.gov/legresou/constitu/170.htm

Louisiana: http://senate.legis.state.la.us/documents/constitution/Article7.htm#§20. Homestead Exemption

Maine: http://www.maine.gov/revenue/propertytax/sidebar/exemptions.htm

Maryland: http://www.military.com/benets/content/veteran-state-benets/maryland-state-veterans-benets.

html http://www.dat.state.md.us/sdatweb/exempt.html

Massachusetts: http://www.massresources.org/real-estate-tax-exemptions.html

Michigan: http://www.michigan.gov/taxes/0,4676,7-238-43535_43538---,00.html

Minnesota: http://taxes.state.mn.us/legal_policy/documents/revenue_analysis_2005_2006_senate_les_

hf0169(sf0417)_2.pdf

Mississippi: http://www.dor.ms.gov/info/rules/homesteadexemptionrules.htm#top; http://www.military.com/

benets/content/veteran-state-benets/mississippi-state-veterans-benets.html

Missouri: http://www.military.com/benets/content/veteran-state-benets/missouri-state-veterans-benets.

html

Montana: http://revenue.mt.gov/forindividuals/taxes_licenses_fees_permits/Property_Taxes/Property_Tax_Re-

lief_Programs/reliefpt.mcpx

Nebraska: http://www.revenue.ne.gov/PAD/legal/regs/40-Property_Tax_Exemption.html#011

Nevada: http://www.storeycounty.org/assessor/exemption.asp

New Hampshire: http://www.ci.durham.nh.us/departments/assessing_o ce/exemptions.html

Property Taxes: A Look at Exemptions, Tax Limits and Assessment Cycles

New Jersey: http://www.nj.gov/treasury/taxation/homestead/geninf.shtml http://www.state.nj.us/treasury/

taxation/lpt/lptdisv.shtml

New Mexico: http://www.military.com/benets/content/veteran-state-benets/new-mexico-state-veterans-

benets.htm http://www.co.mckinley.nm.us/pdf/assessor%20pdf%20les/PropertyTaxExemptions.pdf

New York: http://www.nyc.gov/html/dof/html/property/property_tax_reduc_individual.shtml#421a

North Carolina: http://www.forsyth.cc/tax/exemptions.aspx

North Dakota: http://www.nd.gov/tax/misc/faq/property/proptaxrelief.html#QG1

Ohio: http://tax.ohio.gov/divisions/communications/homestead_exemption_information.stm

Oklahoma: http://www.tax.ok.gov/advform/TES-14.pdf

Oregon: http://www.oregon.gov/DOR/PTD/exemptions.shtml

Pennsylvania: http://www.governor.state.pa.us/portal/server.pt/community/expanded_relief_for_seniors/3071

http://www.military.com/benets/content/veteran-state-benets/pennsylvania-state-veterans-benets.htm

Rhode Island: http://www.tax.ri.gov/forms/2011/Income/2011%201040H.pdf

South Carolina: http://www.sctax.org/Tax+Information/property/prop.html

South Dakota: http://www.state.sd.us/drr2/propspectax/property/home.htm http://www.military.com/ben-

ets/content/veteran-state-benets/south-dakota-state-veterans-benets.htm

Tennessee: http://www.comptroller1.state.tn.us/pa/pdf/ElderlyDisabledBrochure.pdf http://www.comptrol-

ler1.state.tn.us/pa/pdf/VeteransBrochure.pdf

Texas: http://www.window.state.tx.us/taxinfo/proptax/exmptns.html http://www.military.com/benets/con-

tent/veteran-state-benets/texas-state-veterans-benets.html

Utah: http://propertytax.utah.gov/library/pdf/forms/TC-40cy.pdf http://www.military.com/benets/content/

veteran-state-benets/utah-state-veterans-benets.html

Vermont: http://www.state.vt.us/tax/pdf.word.excel/forms/income/2011HI-144-web.pdf

Virginia:http://ballotpedia.org/wiki/index.php/Virginia_Property_Tax_Exemption_for_Veterans,_Ques-

tion_2_%282010%29

Washington: http://dor.wa.gov/docs/pubs/prop_tax/seniorexempt.pdf

West Virginia: http://www.state.wv.us/taxrev/97taxlaws/97tl_property.pdf

Wisconsin: http://www.revenue.wi.gov/faqs/ise/home.html http://www.revenue.wi.gov/faqs/slf/ptrecred.html

Wyoming: http://revenue.state.wy.us/portalvbvs/desktopdefault.aspx?tabindex=4&tabid=11

Restrictions on Local Property Taxes

Guide to Property Taxes: Property Tax Relief, 2002 p. 32-34, National Conference of State Legislatures, William T.

Pound, Executive Director

Assessment Cycles

International Association of Assessing O cers Appraisal Cycles, Section 5 p. 46-47